Dubai Gold (DG) futures on the Dubai Gold and Commodities Exchange (DGCX) are expected to maintain its upward movement on renewed demand for the yellow metal this week, subject to the weakness on the global stock markets.

Increasing concerns about economic conditions in the euro zone and turbulent trading pattern on the global markets are likely to push demand for safe haven securities, say analysts. "Gold futures may move upwards for next two-three sessions before taking a correction later this week. Global uncertainty on economy and stock markets will boost the demand for the yellow metal," Sonika Tondak, a financial analyst at CFG Global, told Emirates Business.

"Gold prices are expected to remain volatile this week. If the upward momentum in prices remains intact early this week, gold may top $1,250 per ounce, although prices did ease last Friday," forecasts CPM Group in its weekly review.

DG futures contract was one of the major volume churners on the DGCX during the past one month owing to brisk trading activity in the metal following the turbulent conditions on global bourses. DG futures contract closed the week at $1,234.20 per ounce registering a rise of 1.94 per cent as the price fluctuations indicated $1,249.30 high and low of $1185 on DGCX.

Akshaya Tritiya, an auspicious day for buying precious things in India, didn't have any major impact on futures trading as there was no trading on Saturday and Sunday.

Previous Akshaya Tritiya witnessed rise of $2.25 in spot gold prices to $884 an ounce and $27.09 in DG futures to $906.60 on DGCX.

"Akshaya Tritiya didn't have much impact as global worries are influencing the market the most. There was no trading before and during the Akshaya Tritiya. DG futures may hover in the range of $1,265 and $1,196 this week. A possible correction may push the contract to $1,196, but it's expected to rise," said Tondak.

Contrary to expectations of further rise in gold futures, some analysts anticipate correction this week before staging another rally as the yellow metal.

Sajith Kumar PK, Chief Executive Officer of JRG International Brokerage, DMCC, said: "What we are expecting is more correction anytime this week. The market witnessed a lot of buying of late. After the gold reaching peak level, most of the jewellers are releasing their hedge positions, which means a lot of buy positions will be squared off. Not only big jewellers but also consumers are looking forward for a correction in gold prices."